Is Allstate Setting Up for a Big Move?

NYSE: ALL | Allstate Corporation (The)  News, Ratings, and Charts

ALL – Allstate Corporation (ALL) has been trading in a sideways trading range where the stock has formed a resistance line and a level of support. At some point, the stock is expected to either break through the resistance or fall through its support. This could result in a breakout or a breakdown. Read more to learn how to take advantage of this trading opportunity.

On the basis of premium sales, Allstate Corporation (ALL) is one of the largest U.S. property-casualty insurers. Personal auto represents the largest percentage of revenue, but the company offers homeowners insurance and other insurance products. Its products are sold in North America primarily by about 10,000 company agencies.

The company is seeing growth through acquisitions and in its emerging businesses. This has resulted in the firm consistently writing higher premiums. Its agreement to sell Allstate Life Insurance company will help streamline its business. This will allow the company to focus on higher growth areas.

ALL has a debt-to-equity ratio of 0.3. A figure this low means the company’s shareholder equity can cover any business downturn. From a growth standpoint, ALL has grown earnings per share an average of 45.2% per year over the past five years. However, analysts expect earnings to fall 43.5% year over year in the third quarter.

The stock looks undervalued with a trailing P/E of 5.37 and a forward P/E of 9.62. This has led to a Value Grade of B in our POWR Ratings system. ALL has shown mixed performance since mid-May. This is evident in the chart below.

Take a look at the 1-year chart of ALL below with added notations:

Chart of ALL provided by TradingView

ALL took off at the end of 2020, eventually stalling between strong support of $125 (green) and a $140 resistance (red). Whichever of those two key levels breaks will likely dictate the stock’s next big move.

Click Here to Read the Greatest Trading Book Ever Written

ALL is trading in a sideways range. Long trades could be entered on a pullback to support, or on a break of resistance, with a protective stop set underneath the point of entry.

Want to Discover More Great Trades?

What is better than finding the 1 attractive stock in this article?

Discovering 5 timely trades…like the ones in this new special report. Click below to claim your free copy now!

5 Stocks Ready to BREAKOUT!


ALL shares were trading at $129.94 per share on Tuesday morning, up $0.94 (+0.73%). Year-to-date, ALL has gained 20.49%, versus a 23.62% rise in the benchmark S&P 500 index during the same period.


About the Author: Christian Tharp


I am an expert stock market coach having helped over 4000 beginner and advanced traders & investors from around the world take control of their financial futures. I also write stock market related articles for the Adam Mesh Trading Group and Yolo Publishing. More...


More Resources for the Stocks in this Article

TickerPOWR RatingIndustry RankRank in Industry
ALLGet RatingGet RatingGet Rating

Most Popular Stories on StockNews.com


:  |  News, Ratings, and Charts

Stock Market “Nausea Index” Going Off

The stock market (SPY) has seen fresh lows this week scaring many investors into selling their positions. On the other hand, 40 year investment veteran shares a proprietary market indicator that points to a significant bounce coming soon. Is he right? You be the judge by reading below.

:  |  News, Ratings, and Charts

3 Stocks that Are Thriving in an Inflationary Environment

Inflation is one of the biggest threats facing the economy. One profitable strategy during this period of high inflation is to focus on stocks that have pricing power, as these companies’ margins will continue to expand. In contrast, stocks without pricing power are likely to underperform as margin compression erodes EPS. Therefore, investors should consider buying these 3 stocks that are thriving in this inflationary environment: Olin (OLN), Nucor (NUE), and Chemours (CC).

:  |  News, Ratings, and Charts

Is the Bear Market Here?

We are witnessing the nastiest stock market (SPY) correction since Covid first came on the scene. That has some pondering if the next bear market is upon us. 40 year veteran investor Steve Reitmeister gives his clear eyed view on the market outlook and trading plan in this timely commentary. Get the full story below...

:  |  News, Ratings, and Charts

4 Best Value Stocks to Buy in January

In times of high inflation, value stocks tend to outperform growth stocks and have done so over the past year. Amid the rising inflationary pressure and looming interest rate hikes, fundamentally sound value stocks ArcelorMittal (MT), Covestro (COVTY), KT Corporation (KT), and Nature’s Sunshine (NATR) could be solid bets.

:  |  News, Ratings, and Charts

Is the Bear Market Here?

We are witnessing the nastiest stock market (SPY) correction since Covid first came on the scene. That has some pondering if the next bear market is upon us. 40 year veteran investor Steve Reitmeister gives his clear eyed view on the market outlook and trading plan in this timely commentary. Get the full story below...

Read More Stories

More Allstate Corporation (The) (ALL) News View All

Event/Date Symbol News Detail Start Price End Price Change POWR Rating
Loading, please wait...
View All ALL News